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Gauging the Worth of 'Market Value'

By

David Reilly

Updated Feb. 20, 2008 12:01 a.m. ET

The smart money keeps looking dumb.

Credit Suisse Group yesterday said it expects to take a $2.85 billion write-down of financial instruments affected by the credit crunch, which will result in a $1 billion drop in quarterly profit, just a week after telling investors it had largely escaped the worst of the financial crisis. American International Group Inc. was forced a week ago to increase by about $3.6 billion estimates of potential losses it had made to investors in late 2007.